Questions tagged [mortgage]

A mortgage is a loan that is secured by real property (land, buildings).

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3
votes
0answers
62 views

Can I use home equity line of credit as second house down payment?

I recently moved to Boston where housing is very expensive compared to where I lived before. Buying a house requires a lot of money as down payment, and I am still short of $30000-$40000. But I have a ...
5
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1answer
132 views

Does a cash back mortgage at a higher rate with the cash immediately applied to the principal make financial sense?

A mortgage advisor was trying to sell me on cash back mortgage. For most clients he said they use it to pay down debt at a higher interest rate or to buy the essentials for a first home. This is not ...
1
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1answer
143 views

Refinance Cost is high

I got 30 years loan for 232K two years ago with interest rate of 4.25% and now I am planning to refinance again for 15 years. Financial company mentioned they can provide interest of 2.85% but the ...
3
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3answers
209 views

Letting a partner in on home ownership gradually

I have owned my house for 10 years. My boyfriend has been living in it for nearly two years. So far he hasn't been paying anything towards the mortgage. We split bills and council tax 50:50. This ...
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5answers
176 views

Is it valid to mix assets and expenses when calculating the worth of a house?

I'm trying to calculate (for myself, not relying on other people's graphs) when it becomes worth it to buy vs. rent. On the positive side, there is: the down payment, property that (roughly, over ...
1
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1answer
43 views

Why do FNMA and FHLMC impose loan limits?

Why do FNMA and FHLMC announce new loan limits for one to four-family loans? Is there a justification to have something called "conforming" loans as opposed to "jumbo" loans? Is this to separate on ...
4
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6answers
2k views

How does paying extra on my mortgage affect my amortization schedule?

I am a first time home buyer and have some spare cash after my home purchase to pay forward quite a bit of money (cash was not available during actual purchase, so, no, I could not have put it towards ...
12
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8answers
6k views

How much income am I getting by renting my house?

I am moving from Portland, OR to SF Bay area and therefore contemplating whether to sell or rent the house. I am not planning to move back to this house. Property details: Bought for : $267,000 Paid ...
17
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7answers
7k views

How to handle shared mortgage payment if one person can't pay their share?

I have been struggling with figuring out how to handle mortgage payment on a common apartment after a breakup. I am usually good with numbers but those configurations all seem to make some sense for ...
2
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1answer
132 views

Mortgage term and overpayment

I have been comparing mortgages on a banks website. It appears that the term I choose does not affect the interest rate I am offered. In this case the deals allow 10% overpayment per year without ...
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2answers
134 views

Buydowns when House Market is Weak

I would like to better understand how the buydown works in residential housing market. A typical situation that comes to my mind is that a developer who wants to get rid of excess supply of homes in ...
0
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1answer
64 views

“Negative Amortization” Terminology

I want to better understand the term "negative amortization". For example, in the Graduated Payment Mortgage (GPM), people often say it usually has negative amortization as the loan balance increases ...
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2answers
93 views

Residential Mortgage Tilt Effect

The way I understand the mortgage tilt effect is that the lender "prices in" the expected rate of inflation into the contract borrowing rate, so that the lender is compensated in the earlier years of ...
3
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1answer
154 views

Why do Loan Discount Points Exist?

Loan Amount Disbursed = Face value of Mortgage in the contract *(1-discount points). Why do we have this type of computation in place in the US? Is this conventional because of some history behind it?...
0
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2answers
60 views

How to calculate the profitability of an investment property, taking mortgage leveraging into account?

If you buy a property with cash, its fairly easy to make a calculation by totaling your profits over the lifetime of your investment against investing the same amount into an index fund. But how does ...
-5
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2answers
136 views

Can I avoid paying property tax by creating a non-profit?

Let's say I own a home and the mortgage is completely paid off. I was reading the nonprofits do not have to pay property tax. What if I created a nonprofit with the sole purpose or mission statement ...
9
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5answers
4k views

Can I pay off my mortgage with a new one?

I'm wondering if this is possible and a wise decision. Let's say I have a house mortgage for $100k. Now, if I were able to save up half of the amount. Should I get another mortgage of $50k and pay ...
10
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1answer
317 views

Should I stop over-paying my mortgage before moving?

In response to this question: Does Bank Manager's discretion still exist in Mortgage Lending a user ("Bryce") commented: Stop overpaying your old mortgage now. Maybe even take out a home ...
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3answers
4k views

Does Bank Manager's discretion still exist in Mortgage Lending

UK-Based Once upon a time, banks gave mortgages based on the branch manager having known Joe Bloggs for 20 years and making a judgement call about whether he was good for the money. These days ...
1
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1answer
175 views

Buying a house with credit line and getting a mortgage later

We are considering buying a house for about $150-160 thousand. We recently moved, and my wife has been on maternity leave benefits for a year now. So, proof of income is basically non-existent. We ...
3
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0answers
59 views

Do you have to pay taxes on a Unison “investment”?

I keep getting these Unison solicitations in the mail. Another question discusses whether or not this is a good deal in general, but one thing I don't see mentioned is taxes. I have searched quite a ...
13
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8answers
26k views

Practicality of 30 year fixed mortgage at 55 years of age

I understand that lenders cannot discriminate based on age, but is there really data to support that lenders do not do that? But suppose if one gets the mortgage when he/she is 55 years or older and ...
2
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3answers
74 views

Assuming a mortage dependent on interest rate outlook

Purchasing a home. All-cash deal is feasible. I believe that mortgage rates will be rising in the near future, say doubling in ten years. I do not believe mortgage rates will fall. I believe interest ...
3
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1answer
162 views

What is effective interest rate?

I'm reading the book The Big Short. In the first chapter, it says that around 2002, Household Finance Corporation was offering home equity loans that were lying to the consumers. They were actually ...
2
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3answers
417 views

The balance between Renting and Buying

My girlfriend and I are spit-balling the idea of buying a house. We've heard pros and cons for mortgages; you're putting your money into an investment vs you're paying far more than you anticipate due ...
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4answers
3k views

How long to wait to change jobs after closing on a home

I am closing on a home in the next few weeks. Is there a period of time AFTER closing I should wait before I look for a new job? Is there any process post closing I need to wait for? I assume I would ...
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4answers
144 views

Impact of Spending Cash/Debit vs Credit Card on Debt to Income Ratio

Since debt-to-income ratio (dti) is an important factor in determining one's creditworthiness especially for mortgage rates, it is clear that one should keep the monthly recurring debt and credit card ...
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2answers
209 views

Removing ex wife and adding new co-owner to mortgage

I am finalizing a divorce where I am being given ownership of our house. The house has a joint mortgage on it, which I will be assuming, While removing my soon-to-be ex wife from the house, I would ...
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2answers
126 views

Renting Part of the Home

I am currently living in a rented house. I am thinking of buying a home with the intention of renting out a section (for example, a two story house, live on the first floor and rent out the second ...
2
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1answer
29 views

Mortgage: Floating rate loan tenure extension on rate increase

I am trying to figure out how my bank has implemented re-pricing on my floating rate home loan. The original home loan was for an amount of ₹ 48 lakhs (₹ 4.8 Mn) at an annual rate of interest (RoI) ...
1
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3answers
358 views

Should one always put 20% down?

I can afford to put up to 25% down in the price range I'm looking at. Assuming average market returns and a high credit score of 800, should I always put 20% down, or should I put less? It would seem ...
13
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11answers
7k views

Amortized Loans seem to benefit the bank more than the customer

It seems to me that a large number of mortgages are refinanced in the first ten years which means the bank is getting mostly interest all the time. More Profit. Also, the bank also has collected the ...
47
votes
6answers
14k views

Why do sellers care about down payments?

I'm going through the process of buying a home now. Whenever I make an offer, the seller wants to know how much of that will be down payment. Why do they care? Isn't the combination of the down ...
10
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3answers
2k views

Do mortgage points get applied directly to the principal? [duplicate]

Lets say I want a $100,000 mortgage. I can get it at x%, or (x-0.25)% if I pay 1 point. If I do the 1 point option, will my first payment be on a $99,000 balance, or a $100,000 balance? In other words ...
2
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1answer
74 views

USA, NY State Homeowner Post-TCA: Should I pay off mortgage or attempt to find investments?

While trying to build a model for our finances, I've managed to confuse myself reading various threads. Any advice appreciated to get me on the right track or pointed towards modelling spreadsheets. ...
2
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2answers
109 views

Does pre-qualification for a mortgage affect your credit score?

If submit a mortgage pre-qualification application, does my credit score go down? Does it trigger a hard credit check? Or do the hard credit checks only come when the mortgage process goes further ...
4
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1answer
326 views

Calculate interest on mortgage

I have been trying to arrive at the same interest figures that my bank charged me on my mortgage, however I am off by a few dollars so I must not be using the correct formula. I have a 30 year ...
4
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1answer
172 views

Is it legal for a Lender to decline an offer after providing me a commitment letter?

I had my commitment letter given to me on August 8th. I provided all requirements for the commitment to get clear to close. The letter states that the commitment can be revoked only for any CHANGE for ...
1
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1answer
98 views

Prepayment of mortgage in summer

In Veronesi's Fixed Income Securities book it is written: Summers are characterized by large prepayments, as this is the period in which people move from one place to another for various reasons....
3
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3answers
159 views

alternative to reverse/Balloon mortgage

Hypothetically, suppose a person who is close to retirement, who has comfortable savings that will last his/her lifetime( if need not to pay monthly mortgage) and is close to retirement and has 2 or 3 ...
2
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4answers
274 views

Do extra mortgage payments typically go directly towards principal?

I have a 30 year mortgage and I'd like to make extra payments each month to speed up the amortization schedule. I thought this would be better than taking out a 15 year mortgage as it gives me some ...
5
votes
2answers
350 views

Is the British student loan considered the same as a standard loan when applying for a mortgage abroad?

I am currently living in the Netherlands and I have quite the accumulation of UK student debt, currently it's sitting at around £50000 but based on my repayment schedule, it wouldn't affect my ability ...
3
votes
1answer
50 views

Ontario Capital Gains,are profits also part of taxable income?

Say I Sell my investment property house for 500k and bought it for 250k. Leaving me 250k profit. I'd be taxed on 50% of that correct: 250/2 = 125k taxable. and 125k Profit. Now my 125k is taxed ...
3
votes
1answer
202 views

What's the incentive to offer consumers loans with negative interest?

A bank in Denmark (Jyske Bank) is reportedly going to offer consumer mortgages at -0.5% interest. First off, is that true? Or is there some catch making the actual effective interest positive? If it'...
7
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1answer
253 views

Mortgage Advisor recommending long term mortgage at first, with short term later. Advisable?

Issue and Background Having gotten a new job, I am moving out of my rented accommodation, and moving across the country to what is a far more expensive area, where I am buying a 45% share in a £260,...
1
vote
1answer
90 views

Mortgage in principle with several mortgage advisors (UK)

I am looking to buy my first home (UK). Because we are a bit nervous, we are visiting 3 different mortgage advisors with the intention of obtaining the best deal possible. All of them say that we won'...
0
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0answers
38 views

Total Claim Amount vs Claim Checks Amount

Some damage was done to my house. I received 2 checks from the insurance company: Check payable to me AND the bank in the amoutn of $x to cover damage to the house Check payable to me in the amount ...
1
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2answers
175 views

30 yr mortg + IRA/stock market, OR 15yr mtg then 15 yrs IRA/stocks

I'm planning to refinance the mortgage given the low rates these days. Need to make a choice between a 30 yr fixed and a 15 or 20 yr fixed. Monthly household budget can accommodate any of the mortgage ...
10
votes
1answer
394 views

Demolishing a home and rebuilding

My fiance owns a nice piece of property with an old run down home. The value of land and house right now is about 250,000. There is no mortgage on this property. How do I borrow money to demolish ...
8
votes
1answer
326 views

Mortgage broker insisting I sign out of date disclosures

I'm working with a mortgage broker who so far has been very helpful and transparent. I had asked for a preliminary mortgage estimate and we locked in a rate at that time. We changed up the terms of ...